Monday, 28 August 2017

FIRST - HALF EQUITY INFLOWS Since 2010

Equity fund managers shuffle top picks in first half of 2017

India's equity fund managers have actively shuffled their portfolios in the first half of 2017, amid a gush of robust inflows from domestic investors. With benchmark indices seeing a steep climb, investment managers have strived to generate market-beating performance.

Reliance Industries and Axis Bank, among the 10 most-owned stocks by equity fund managers at the end of 2016, have dropped off the list, replaced by Kotak Mahindra Bank and HDFC.

While the rest of the top 10 stocks has remained the same, the pecking order has undergone a change.

At the start of the year, HDFC Bank, ICICI Bank, Infosys, State Bank of India (SBI) and Larsen & Toubro (L&T) were the top five holdings, respectively, of equity MFs. At the end of June, Infosys was relegated to fifth slot, while SBI and L&T moved up one notch each. Among the top 10, Maruti Suzuki and ITC also traded places, with the FMCG giant going one up over the carmaker.

According to equity heads in the sector, it has been a stock-pickers’ market to generate benchmark-beating returns. But, they admit since these stocks make up the core of the equity asset management, too much juggling is always avoided unless there is a very strong investment call on some other stock.

Meanwhile, three sector giants — Tata Consultancy Services (TCS), Bharti Airtel and Power Grid Corporation of India were ousted from the top 20 most-owned stocks in June. In their place, fund managers brought in Indian Oil Corporation (IOC), Federal Bank and Tata Steel.

As of June 30, the top 10 most-owned stocks made up nearly Rs 1.44 lakh crore of equity assets. At the start of 2017, these stocks accounted for Rs 1.06 lakh crore. HDFC Bank continued to be the most-owned stock with fund managers pouring in Rs 29,600 crore, followed by ICICI Bank (Rs 21,340 crore).

On expectations of interest rates hikes by the US Federal Reserve in the coming months, Foreign Portfolio Investors (FPIs) offloaded shares worth Rs 30,726 crore during October-December period. However, they turned net buyer in the ongoing quarter and bought shares worth net Rs 1,768 crore till February 15, according to the data available with depository NSDL.

According to the data available with ICICI Securities, FPIs increased holdings in Hindalco IndustriesBSE 0.48 % from 29.20 per cent in Q1FY17 to 32.30 per cent and 32.40 per cent in Q2 and Q3, respectively. Similarly, they increased holdings in Hero MotoCorp from 41.30 per cent for the quarter ended June 30, 2016 to 43.80 in September 2016. For the quarter ended December 2016, their holding in Hero MotoCorp was 44.10 per cent. (For others see table)

For the quarter ended 30-06-2017, the company has reported a Standalone sales of ₹ 56.90 Cr., down -20.90 from last quarter Sales of ₹ 71.93 Cr. and up 20.57 from last year same quarter Sales of ₹ 47.20 Cr. Company has reported net profit after tax of ₹ 2.36 Cr. in latest quarter.

WILL APOLLO TYRE & J.K.TYRE BE RE-RATED?

Apollo, JK Tyre may see re-rating

Tyre stocks, including MRF, CEATBSE 2.63 % and Balkrishna, have gained 45-70 per cent in six months due to high earnings visibility and consumer nature of the business. These stocks now trade at 18-23 times their earnings. Other tyre stocks such as JK TyreBSE 1.42 % and Apollo TyresBSE 0.12 % are still trading cheap and appear to be due for re-rating.

Of this, JK Tyre is the market leader in the commercial vehicles (CV) segment with 28 per cent market share and derives 80 per cent of revenue from the segment. The government's focus on infrastructure development is expected to boost the demand in the CV segment. Good monsoon and better rural income, too, could boost demand for light CVs.

Another positive for JK may be the possibility of lower Chinese tyre dumping after GST. JK is perceived to be the most vulnerable to Chinese tyres due to higher exposure to commercial vehicle segment where consumption of Chinese tyres is higher.

Salasar Techno Engineering Ltd

Salasar Techno Engineering lists at 140% premium to issue priceNEW DELHI: Salasar Techno Engineering on Tuesday made a stellar debut, as the stock got listed at Rs 259.15 on BSE, a 139.95 per cent premium to its issue price of Rs 108 per share.The stock has been admitted to dealings on the exchange in the list of ‘T’ group of securities.The company, which is into steel fabrication and infrastructure solutions, had received a huge response for its IPO, with the issue getting 273 times subscription.The issue comprised of 33.21 lakh equity shares at a price of Rs 108 per equity share, aggregating to Rs 35.86 crore. Proceeds from the issue will be utilised for meeting working capital requirements and general corporate purposes.Courtesy: See More @ http://bit.ly/2vr8qnF

Return Check

A 100,000-rupee investment in Jaiprakash Associates Ltd. A year ago would have grown to around 194,371 rupees today.

JP Associates, lenders breathe easy after deal; should you buy

Shares of the debt-ridden Jaiprakash AssociatesBSE 1.90 % more than doubled investor wealth in last one year. The scrip has surged 190 per cent to Rs 22.70 as of June 29 from Rs 7.83 on the same day last year.

The jump in share price indicates that an investment of Rs 1,00,000 a year back would have now become nearly Rs 2,90,000.

However, market experts say there was a lot of speculative trading on the counter.

Jaiprakash Associates (JAL) is once again hogging limelight after UltraTech CementBSE -0.28 % completed the Rs 16,189 crore acquisition of the company’s six integrated cement plants and five grinding units, having a capacity of 21.2 million tonnes.

Market experts say the country’s biggest asset resolution may give some respite to banks and Jaypee Group stocks. The deal will help the Jaypee Group to reduce debt, which runs into thousands of crores of rupees.

These Funds Doubled Investor Wealth in Little Over 3 Years

Given the Sharp rise in markets over the past year, wealth managers have been recommending multicap funds,whose portfolios have a mix of largecap and midcap stocks. These funds have the flexibility to alter largecap-to -midcap ratio,.depending on their outlook on the markets, which has helped them double investor money.Fund managers have made the best use of this flexibility over the last three to four years, by first increasing allocation to mid and small-cap funds which gave higher returns and then pruning their allocation there and there and increasing it to largecap stocks.

Funds that doubled investor wealth in little over 3 years

Given the sharp rise in markets over the past year, wealth managers have been recommending multicap funds, whose portfolios have a mix of largecap and midcap stocks. These funds have the flexibility to alter largecap-to-midcap ratio, depending on their outlook on the markets, which has helped them double investor money. Fund managers have made the best use of this flexibility over the last three to four years, by first increasing allocation to mid and smallcap funds which gave higher returns and then pruning their allocation there and increasing it to largecap stocks

ET takes a look at five such funds, which have doubled investor wealth in a little over three years.

About Uflex Ltd

Uflex Ltd., incorporated in the year 1988, is a Mid Cap company (having a market cap of ₹ 2956.34 Cr.) operating in Packaging sector.

Uflex Ltd. key Products/Revenue Segments include Plastic Products which contributed ₹ 3690.26 Cr to Sales Value (94.92 % of Total Sales), Job Work which contributed ₹ 67.16 Cr to Sales Value (1.72 % of Total Sales), Other Operating Revenue which contributed ₹ 52.06 Cr to Sales Value (1.33 % of Total Sales), Scrap which contributed ₹ 29.66 Cr to Sales Value (0.76 % of Total Sales), Export Incentives which contributed ₹ 24.96 Cr to Sales Value (0.64 % of Total Sales) and Other Services which contributed ₹ 23.40 Cr to Sales Value (0.60 % of Total Sales)for the year ending 31-Mar-2017.

For the quarter ended 30-06-2017, the company has reported a Consolidated sales of ₹ 1595.83 Cr., down -3.92 from last quarter Sales of ₹ 1660.99 Cr. and up 7.80 from last year same quarter Sales of ₹ 1480.42 Cr. Company has reported net profit after tax of ₹ 93.01 Cr. in latest quarter.

The company’s top management includes Dr.Arvind Mahajan, Mr.Achintya Karati, Mr.Amitava Ray, Mr.Ashok Chaturvedi, Mr.Pradeep Poddar, Mr.Tara Sankar Sudhir Bhattacharya, Mr.V Anishbabu, Mrs.Indu Liberhan. Company has Vijay Sehgal & Co. as its auditors. As on 30-06-2017, the company has a total of 72,211,486 shares outstanding.

FIIs Beware!!

Rs 9,00,000 crore domestic demand for equities for next five years: Can you see the wealth?

India stands at the cusp of growth. And retail investors must not let this unique opportunity go by. Again! Indians have been selling equities since 1994 and FIIs have been mopping it up.

In reality, we have sold a high return earning asset for the sure comfort of low yielding deposit.

But, thankfully, this is the change for most of it. Today, there are 80 lakh Indians who are doing systematic investment plans (SIPs) every year. They are bringing in roughly Rs 30,000 crore every year into equity mutual funds. This trend is only likely to accelerate as the word of mouth spreads about SIP experience.

India has its fiscal deficit and current account under control. Growth is picking up, investment potential is high, inflation is falling and rupee is stable. India is one of the few countries where interest rates can be brought down even after half percent cut. On a top-down basis, India looks like an oasis among a barren desert.

From a technical point of view, the market has corrected as FIIs have turned net sellers. They have sold more in August and September 2015 than what they have sold in entire 2008 in rupee terms. The correction, however, is a fraction of what happened in 2008. The selling has been offset by domestic investors led by mutual funds.

Rolled out of gsd and you have seen the impact on stock market for last 2-3 days. It will still take some time for nation to adjust to GST. CDSL IPO has been listed well and on the day of listing, it was 80% Up, Its independent body that works in stock market.

Kisan Vikas Patra and PPF rates of interest earnings are lowered now, these instruments are looking less attractive. The market looks far from downtrend right now.

Recommendation:

CDSL : CMP 265 /- FV: Rs. 10/-

You will be surprised why such a fresh share (that just got listed) has been recommended by me. I Feel the company that is so very important for stock market cant be ignored. It keeps track of BUY and SELL transactions of the shares in the stock market. All investors have to be ready to keep all transactions under DEMAT in a short time to come. New investors, new investoment schemes and system based working of furure generation, these factors will be responsible for growth of this company. Around 300 to 500 stocks of this company will be definitely beneficial to accumulate. There are no doubts in my mind about commission income of this company that will have consistent growth in times to come.

GST ROLLED OUT

GST ROLLED OUT ! and you have seen the impact on stock market for last 2-3 days. It will still take some time for nation to adjust to GST. CDSL IPO has been listed well and on the day of listing, it was 80% Up, Its independent body that works in stock market.

Kisan Vikas Patra and PPF rates of interest earnings are lowered now, these instruments are looking less attractive. The market looks far from downtrend right now.

Recommendation:

CDSL : CMP 265 /- FV: Rs. 10/-

You will be surprised why such a fresh share (that just got listed) has been recommended by me. I Feel the company that is so very important for stock market cant be ignored. It keeps track of BUY and SELL transactions of the shares in the stock market. All investors have to be ready to keep all transactions under DEMAT in a short time to come. New investors, new investoment schemes and system based working of furure generation, these factors will be responsible for growth of this company. Around 300 to 500 stocks of this company will be definitely beneficial to accumulate. There are no doubts in my mind about commission income of this company that will have consistent growth in times to come. Kedar Oak

Time to Move on from FD's to alternative Instruments

Finance minister Arun Jaitley has said conventional deposit rates and lending rate are very low, but powerful alternative instruments can earn lot higher returns."That is how the pension funds and sovereign funds are surviving and doing extremely well," he said, adding that now in india, as that opportunity expands and as a number of people with additional resources increases, you need a set of competent managers to manage.The finance minister was apeaking at the launch of State Bank of India wealth management services named SBI Exclusif. Jaitley noted that the convention was that bank deposits, or other government schemes, were probably the safest and best investment."It was certainly safe, but then the whole concept of economic system, banking system that paid high rate of intrest for those deposits were no longer relevant," he said.

The rally in banking stocks since the start of calendar year 2017 (CY17) has brought cheer to qualified institutional buyers (QIBs), as shares of most banks have outperformed the markets and are trading at a premium to their respective qualified institutional placement (QIP) issue prices.

Thus far in the CY17, investors in banks like State Bank of India (SBI), YES Bank, Kotak Mahindra Bank, Lakshmi Vilas Bank and DCB Bank have rallied up to 21% over their respective QIP issue prices. The BSE Sensex, by comparison, has recorded an average gain of 9% during this period.

Of the 18 QIPs that raised Rs 34,349 crore in CY17, stocks of 16 are trading above their QIP issue price. While Federal Bank at Rs 115 is nearing its QIP issue price of Rs 116, United Bank of India – the top loser in this pack – is quoting 16% lower against QIP issue price of Rs 23.22 at Rs 19.50 levels.

Stocks And Share Analyst - RELIANCE PRICE CHART

Reliance Industries Ltd. (RELIANCE) - Company History

Reliance Industries Ltd is an India-based company. The company is India's largest private sector company on all major financial parameters. They are the first private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks 117th amongst the world's Top 200 companies in terms of profits. The company operates world-class manufacturing facilities across the country at Allahabad, Barabanki, Dahej, Hazira, Hoshiarpur, Jamnagar, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara.

The company operates in three business segments: petrochemicals, refining, and oil and gas. The petrochemicals segment includes production and marketing operations of petrochemical products. The refining segment includes production and marketing operations of the petroleum products. The oil and gas segment includes exploration, development and production of crude oil and natural gas. The other segment of the company includes textile, retail business and special economic zone (SEZ) development.

In the year 1966 the RIL was founded by Shri Dhirubhai H.Ambani, it was started as a small textile manufacturer unit. In May 8, 1973 RIL was incorporated and conformed their name as RIL in the year 1985. Over the years, the company has transformed their business from manufacturing of textiles products into a petrochemical major.

The company has set up a texturising / twisting facilities in 1979, RIL has also set up plants for Polyester Staple Fiber (PSF) in 1986 and for Linear Alkyl Benzene (LAB) & Purified Terephthalic Acid (PTA) in 1988. RIL has setup a petrochemical facility to produce HDPE and PVC at Hazira, Gujarat in technical collaboration with DuPont and BF Goodich respectively. The Hazira petrochemical plant was commissioned in 1991-92.

The 50-share Nifty has risen 22% in 2017, and five stocks alone have contributed almost 47% to this surge of 1,835 points. Reliance Industries is the biggest contributor to the rise this year. Its shares rose almost 50% in 2017, pushing up the Nifty by 247 points.

The HDFC twins have contributed more to the Nifty’s rise. Together, they added 391 points to the benchmark this year. ITC added 121 points, while Kotak Mahindra Bank added 104 points. Together, these five stocks have added 863 points to the Nifty this year.

ET Wealth looked at where the Nifty would be if these five stocks were not included in its computation. Without Reliance, the Nifty would be at 9,774 today. Without the top five winning stocks, it would be floundering at 9,158.

Though 2017 has been a good year for stocks and while most stocks rallied in 2017, some laggards have pulled down the index. The biggest culprit, ONGC, slipped 20.36% in 2017, denting the index by 30 points. The fall was bigger for Lupin (-24.4%), but its lower weight-age in the Nifty caused a loss of only 23 points.

GST ROLL-OUT PUTS JULY CAR SALES IN TOP GEAR

Full throttle: Car sales surge 15% in race to pass on GST sops

Domestic sales of passenger vehicles (cars, vans and utility vehicles) expanded at more than 15 per cent in July — the highest pace in the first seven months of this calendar year. This growth, however, comes after a double-digit decline of 11 per cent in June, when companies regulated sales to reduce dealers’ loss on pre-goods and services tax (GST) inventory. Six leading companies, including Maruti Suzuki, Mahindra & Mahindra (M&M), Honda and Toyota, recorded high double-digit growth, as they replenished the inventory at dealerships.

The country’s biggest carmaker, Maruti Suzuki, has sold a record monthly volume of 153,298 vehicles in the domestic market during July, growing 22 per cent over last year. Maruti, the country’s most valued automobile company, made a new record at the bourses, with its stock hitting a fresh high of Rs 7,920 in Tuesday’s trade. It closed at Rs 7,859, up almost 2 per cent from the previous day. All vehicle segments, except vans, recorded double-digit growth for the company.

The industry is unlikely to sustain this high growth in August. This is because retail sales have not been strong in July.

Buyers advanced purchases in June to take advantage of the deep discounts and offers rolled out by companies and dealers to clear pre-GST inventory.

R S Kalsi, executive director (marketing & sales) at Maruti Suzuki, said recently that the performance of June and July should not be seen in isolation. Korean carmaker Hyundai, the second biggest player, reported a growth of about 4 per cent in July to sell 43,007 units. The lowering of prices on account of GST implementation and good monsoon will increase customer confidence and sentiment towards vehicle buying, said Rakesh Srivastava, director (sales & marketing), Hyundai.

SENSEX @ 32,500! THESE 10 FPI HEAVY STOCKS ROSE MORE THAN 100% IN 1 YEAR

Sensex @ 32,500! These 10 FII favourites rose more than 100% in 1 year

Rising liquidity is one of the prominent factors which pushed benchmark indices and stocks to record high levels so far in the year 2017. The foreign portfolio investors (FPIs) have raised their exposure in as much as 55 stocks in the last four quarters.

Among the stocks in which FPIs raised their stake in the last four quarters, almost 10 of them have more than doubled investors’ money in the same period which include names like Sharda Motor, West Coast Paper, IFB Industries, Himadri Speciality, Heritage Foods, NOCIL, Sundaram Clayton, MRF, Kirloskar Brothers, and Gujarat Ambuja Exports.

There are 11 such companies in which FPIs hold over 10 percent and have only added to their holding in the last four quarters which include companies like TVS Motor, Care Ratings, Crompton Greaves, Shriram City Union, Elgi Equipment, Shree Cements, Shemaroo Entertainment, UltraTech Cements, NIIT, La Opala RG, and Shriram Transport Finance.

The recent investment trend suggests that FPIs are slowly moving their investment towards small and midcap names from largecap names which is a good sign. In the last 5 years, midcaps have outperformed Nifty by 50 percent and the way the momentum is going, the outperformance is likely to continue.

TYRE STOCKS IN FIRM GIRP

The major bulk of the tyre industry turn over comes from the Truck and Bus tyre segment which accounts for more than 60%. The tyre industry is considered to be a raw material intensive industry. It depends heavily on the Natural Rubber, Carbon Black and NTCF. Reports suggest that tyre industry consumes around 58% of total natural rubber produced in India. ATMA is the governing body. The demand for the tyre industry comes from OEM, replacement & export market. A severe fall in automobile sales in the international market, coupled with stringent norms imposed by the most of the countries has impacted tyre exports from India. The substantial fall of rupee against major currencies also impacted the local tyre manufacturers. The OEM plays major role for passenger car tyres, Tractor Rear tyres, Scooter including moped and motorcycle tyres. The export market mainly constitutes Truck & bus tyres and LCV's. The Director General, on April 6, 09 has terminated the safeguard investigation initiated on imports of Nylon Tyre Cord Fabric into India from People's Republic of China. Thus the importers need not pay any safeguard duty to the Government towards import of NTCF from china. This decision has added advantage for the domestic tyre makers to import at lower prices, and the producers of NTCF to work for a competitive pricing.

HITS- 2 YEAR HIGH AS DOLLAR INFLOWS INTENSIFY

Emerging stocks hit 2-year high; Qatar pressures increase (COMPO)

LONDON, June 9 (Reuters) - Emerging stocks inched to new two-year highs on Friday and were set to end the week in the black, but Qatar's riyal fell further in the offshore forwards markets after a rollercoaster week that saw its stocks lose 7 percent.

Overall emerging markets were kept in check by a firmer dollar and weaker Chinese factory gate prices that again cast doubts on economic growth, but MSCI's emerging equity index rose 0.2 percent for a 0.6 percent increase this week.

Qatari stocks stabilised on Thursday after sharp falls, but pressure on its currency and bonds showed little sign of abating, with one-year dollar/riyal forwards hitting the lowest since December 2015 in offshore trade.

The riyal has traded as low as 3.7 per dollar in onshore forwards markets, Thomson Reuters data shows, a record low, and some 1.6 percent below its spot pegged rate.

"There is a bit of a spike but Qatar has plenty of reserves to fight the attack on the currency, so we don't think a de-peg is on the cards," Societe Generale strategist Regis Chatellier said. He ruled out defaults despite pressure on Qatari bonds.

Sovereign credit default swaps (CDS) also rose to a new seven-month high of 101 basis points (bps), almost double week-ago levels, according to IHS Markit.

IPO Price Band ₹424 - ₹432

Mumbai: BSE Ltd, Asia’s oldest stock exchange, on Monday said that it will sell shares in its initial public offering (IPO) in a price band of Rs805-806 per share.

Last week, Mint reported that BSE was looking at pricing its shares between Rs800 and Rs850 per share.

At the upper end of the price band, the BSE IPO will see investors in the exchange sell shares worth Rs1,243.4 crore (approximately $183 million).

The BSE issue size is estimated to be Rs1,200-1,300 crore, Mint reported in September. The exchange had filed its draft red herring prospectus (DRHP) the same month.

The IPO will open on 23 January, BSE said. The issue closes on 25 January. Shares will be allotted to anchor investors on 20 January. Anchor investors are institutional investors to whom shares are allotted on a discretionary basis a day prior to the public launch of the offer, as part of anchor book allocation.

On 3 January, market regulator Securities and Exchange Board of India, or Sebi, approved BSE’s IPO, thus giving it the go-ahead to launch the share sale.

BSE’s larger rival, National Stock Exchange of India Ltd (NSE), too has filed its DRHP with the regulator. Existing investors of NSE are looking to dilute 22.5% stake through the IPO, which could be as large as Rs10,000 crore.